Nasdaq Composite

The N A S D A Q has been the catalyst to a large part of the ‘irrational exuberrance that Alan Greenspan remarked upon when the index sat at 2200 points. Overpriced shares were the last thing on investors minds’ when the index went above 5000 propelled on the back of internet start ups like Amazon and CDNOW. The index has since lost over 40% of it’s value as investors began to choose companies which made money. Now recovering to around a 4000 level the market has a great future as innovative American Internet company threaten to dominate the domain of cyberspace. ... more

Well, who would have thought it. Nearly a year ago to the day, the nasdaq closed at its highest level ever seen. Since that time, a lot of the irrational exuberance has faded and this has now been replaced by a faltering us economy, and tech stocks that are unable to rise to the promises that they were all thought to have promised. In my view we are still in a bear market anmd tech stocks are now being sorted out. Those with crazy valuations are being slated and brought back down to earth, and rightly so. We must wait until at least the third quarter of this year before things settle back down ... more